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Monday, January 23, 2017

In First Move Trump Screws Those Who Voted For Him - Makes It Harden For Them to Buy First Home with FHA Mortgage

Hard Not to Feel They Had it Coming

The banking system reacted to the financial crisis caused in part by their lending money to people unqualified for getting a loan to buy a house by not lending to people who were qualified to buy a house. So in stepped the FHA to provide mortgage guarantees for lower income less credit worthy but qualified homebuyers who could only make a small down payment. And President Obama lowered the mortgage guarantee cost to make it even easier for people to buy houses and to offset the rise in interest rates.

This of course infuriated Republicans who feel low income people should live in substandard rental housing, because otherwise it's unfair to slumlords. So in his first move Trumpie reversed the Obama policy and made it a lot harder for people to buy a house.

"The reduction was scheduled to take effect on new FHA loans insured on or after Jan. 27. A buyer who this week went under contract to buy a house using an FHA loan may now find that his monthly payment has gone up. It was estimated the reduction would have saved borrowers about $500 per year.

“According to our estimates, roughly 750,000 to 850,000 home buyers will face higher costs, and 30,000 to 40,000 new home buyers will be left on the sidelines in 2017 without the cut,” William E. Brown, National Association of Realtors president, said in a statement."

The people most harmed were likely Trump voters. Ha Ha folks, you bought it, you own it. Too bad you can't enjoy that new home you thought you were getting. But hey, you're conservative, you don't think government should help out peope like yourselves, so no harm done, right.

Oh, and if anyone is wondering why the media didn't cover this story, well they had more important things to report on, like what clothes Ivanka and Melania wore. That's what really is what the news is all about, what Jefferson and other celebrated as freedom of the press.